John Symond suggests there's no need to panic in the current apartment oversupply

John Symond suggests there's no need to panic in the current apartment oversupply
John Symond suggests there's no need to panic in the current apartment oversupply

Aussie John Symond has said not to panic with the talk of apartment oversupply across Australia.

Speaking to 2GB broadcaster Ross Greenwood, Symond suggested that a purchase in the current market needs to be well thought out.

"I'm saying not to panic.

"If you were a buyer you're going to win out, in terms of if you're after an apartment to buy, but you're really going to have to do your homework," he said.

"Some areas will be impacted and prices will be softer, or lower in certain areas and not other areas.

'"My suggestion is don't buy until you do all your homework, seek independent advice then go and talk to a broker to make sure you get the right home loan," he added.

In reply to the restricted lending criteria which may see a 30 percent deposit required to buy an apartment in a block higher than six levels, he said it's been a long time coming.

"It's been a long time coming with the potential of oversupply of apartments.

"But we've got to remember it's (the oversupply) in different areas so you've got to be careful."

He said that there might be an opportunity to buy an apartment for a significant discount.

"You might get up to 20 percent under where values were a year ago.

"It's unfortunate if you're locked in and you've already paid the deposit, you're taking that risk, but if you're coming in looking for an investment or home to live in, you're going to be able to buy much much better than you would have a year ago."

He did have a warning for investors however.

"You've got to remember, if you're buying to rent, those are oversupplied areas you'll find it much more difficult to find a tenant and you've got to be prepared to have it empty for some time or take a substantial discount on the first year or two with the rent you'll get.

On comments made about the market doing well, Symond suggested that he thinks investors are probably spurred on a bit.

"Not just with the lower interest rates but the fear if Labor was to get in and hit existing properties on the head in terms of negative gearing going forward.

"Labor said that they will grandfathers those so you do have some people saying I better get in because i need to get the negative gearing to make the investment work for me," he said.

"So i think there's a combination of reasons why the market is still bubbling along quite healthily."

Symond also suggested that Harry Triguboff, who topped the rich list for 2016, has done an amazing job.

"I think Harry's in the great position where if he can't sell them he keeps them and rents them out." 

To listen to the interview in full click here.

 

 

 

 

 

 

 

Tags: 
Oversupply Apartment Market

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